Zhitong Finance App News, Xiangcai Co., Ltd. (600095.SH) issued an announcement. The company's subsidiary, Xiangcai Securities Co., Ltd. (hereinafter referred to as “Xiangcai Securities”), was filed by the China Securities Regulatory Commission on July 31, 2026 for allegedly violating the “Measures for the Administration of Securities Brokerage Business” relating to the real-name account system, etc. On November 11, 2026, the subsidiary Xiangcai Securities received the Hunan Securities Regulatory Bureau's “Administrative Penalty Decision” ([2026] No. 16) and “Administrative Supervision Measures Decision” ([2026] No. 47 and No. 48). Among them, the main contents of the “Administrative Penalty Decision” are as follows:
It was discovered that the parties involved had the following illegal facts: First, there were major flaws in the brokerage business control of Xiangcai Securities, and there were omissions in the relevant business rules. At the same time, they carried out relevant brokerage business in violation of their own business rules and provided relevant information technology services in violation of regulations. Second, Xiangcai Securities made a major mistake in implementing the real-name account system. In the process of verifying abnormal transactions, it failed to effectively perform duties such as using the real-name account system and managing abnormal transactions. Third, Xiangcai Securities seriously violates information security regulations. The related hidden risks may have a great impact on the safe and smooth operation of the securities and futures industry network and information, and have failed to fulfill reporting obligations in accordance with the regulations.
The act of major flaws in the control of the securities brokerage business of Xiangcai violates Article 27 (1) of the “Regulations on the Supervision and Administration of Securities Companies” (Order No. 653 of the State Council), section 33 (1), and section 39 (1) of the “Measures for the Administration of Securities Brokerage Business” (Securities Regulatory Commission Order No. 204, same below), constituting a situation stipulated in Article 45 (1) of the “Measures for the Administration of Securities Brokerage Business”.
Xiangcai Securities's act of implementing the real-name account system violates section 3 of the “Regulations on Strengthening the Management of Securities Brokerage Business” (Securities Regulatory Commission Notice (2010) No. 11), section 25 of the “Measures for the Administration of Securities Brokerage Business”, section 24 of the “Administrative Measures on Securities Registration and Settlement” (Securities Regulatory Commission Order No. 147), and section 25 of the “Administrative Measures on Securities Registration and Settlement” (Securities Regulatory Commission Order No. 197), which constitutes a situation stipulated in Article 45 (1) of the “Measures for the Administration of Securities Brokerage Business”.
The serious violation of information security regulations by Xiangcai Securities violates Article 31 of the “Securities and Futures Industry Information Security Management Measures” (CSRC Order No. 82) and Article 36 of the “Measures for the Administration of Network and Information Security in the Securities and Futures Industry” (CSRC Order No. 218, same below), constituting a situation stipulated in Article 62 (2) of the “Securities and Futures Industry Network and Information Security Management Measures”.
As the vice president and president of Xiangcai Securities in charge of brokerage business at the time (November 2022 to now), Zhou Lefeng is a supervisor directly responsible for major flaws in the management and control of the brokerage business of Xiangcai Securities and major mistakes in implementing the real-name account system. As the head of the sales department at the time, Liang Zhen was the supervisor directly responsible for major flaws in the management and control of the brokerage business of Xiangcai Securities and major mistakes in implementing the real-name account system. As the chief information officer of Xiangcai Securities at the time, Ding Jun was the supervisor directly responsible for major flaws in the management and control of the brokerage business of Xiangcai Securities and serious violations of information security regulations. As the general manager of the Information Technology Center of Xiangcai Securities at the time, Deng Gang was the supervisor directly responsible for major flaws in the management and control of the brokerage business of Xiangcai Securities and serious violations of information security regulations. As the vice president in charge of brokerage business at the time of Xiangcai Securities (November 2022 to date), Qiu Yuqiang is the other person directly responsible for management responsibility for major flaws in the management and control of the brokerage business of Xiangcai Securities and major mistakes in implementing the real-name account system.
The following penalties were imposed: 1. A warning was given to Xiangcai Securities Co., Ltd. and a fine of 290,000 yuan; 3. A warning was given to Zhou Lefeng and a fine of 200,000 yuan; 3. A warning was given to Liang Zhen and a fine of 200,000 yuan; 4. Ding Jun was warned and fined 190,000 yuan; 5. A warning was given to Deng Gang and a fine of 190,000 yuan was imposed; 6. Qiu Yuqiang was warned and fined 180,000 yuan.